Gulf Cryo plans near-doubling of CO₂ capacity as food and water demand grows

The Gulf’s dependence on imported food and desalinated water is driving demand for an industrial gas often associated with emissions: carbon dioxide. About 80% of the region’s food comes from abroad, while roughly 80% of UAE drinking water is produced by removing salt from seawater, Gulf Cryo chief executive Ranjith Nair told Khaleej Times. CO₂ supports greenhouse cultivation and water treatment, making its availability important well beyond factories.

Gulf Cryo plans to raise regional production capacity from 695 metric tonnes a day to 1,300 by the end of 2026, nearly doubling its output capability. That would exceed 470,000 tonnes annually. The expansion comes as several global markets face pressure on CO₂ supplies. A forecast from Polaris cited by Khaleej Times puts annual growth in the Middle East market at 5.6%, taking its value to $2.29 billion by 2034. Food and beverages account for 41% of demand.

A supply network for everyday essentials

Nair links consumption to population growth, which increases demand for carbonated drinks and bottled water. Industrial expansion adds uses such as welding, while hospitals and greenhouses also require the gas. The Gulf Cooperation Council accounts for a third of global desalination capacity, he said. Oil producers are another customer: Gulf Cryo supplies refinery-captured CO₂ for enhanced oil recovery, a process that injects gas into ageing wells to help extract more oil.

According to Khaleej Times, Nair said Gulf Cryo’s planned Abu Dhabi facility would fully secure the UAE’s CO₂ requirements for the foreseeable future.

The company’s approach is to give each market its own production base, then use the regional network as backup during maintenance shutdowns, seasonal demand peaks or disruptions at source plants. By year-end, Gulf Cryo expects capacity of 200 tonnes a day in the UAE, 750 in Saudi Arabia and 350 in Kuwait. Those centres also serve the wider Gulf. Another 750 tonnes a day could be activated at existing facilities, lifting total capacity above 2,000 tonnes daily.

Nair pointed to the recent regional conflict as a test of that network. He said Gulf Cryo continued supplying key sectors because it draws from five sources across three countries. He contrasted that with Europe, where the shutdown of fertiliser-based sources caused a major CO₂ shortage. He declined to provide a five-year Gulf demand forecast, saying the company models demand country by country.

Abu Dhabi is the next capacity milestone

The UAE expansion will quadruple capacity to 200 tonnes a day, with scope for another 150. Central to that increase is Gulf Cryo’s second UAE carbon capture facility, in Abu Dhabi, scheduled to begin operating by year-end. Carbon capture collects CO₂ from industrial processes for recovery and use. The plant is intended to cut dependence on deliveries from the company’s neighbouring-country facilities and is designed for rapid expansion when needed.

The build-out sits alongside wider capture ambitions. The UAE issued its national Carbon Capture Policy in January 2026, and ADNOC targets 10 million tonnes of annual capture by 2030. Saudi Arabia targets 44 million tonnes by 2035. Gulf Cryo’s recovery business relies on long-term industrial partnerships, including RAK Ceramics, Equate, Petro Rabigh and Ma’aden. Next to watch are the Abu Dhabi start-up, delivery of the 2026 capacity target and new partners that Nair said would be announced soon.